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The Prime Minister is to meet union leaders in a bid to defuse an increasingly bitter dispute over new rights for 1.4 million temporary and agency workers.

Gordon Brown will spell out his idea of a commission to examine the arguments for and against measures to tackle abuses of staff employed through agencies or those on temporary contracts.

Mr Brown will say that the commission will be modelled on the Low Pay Commission which led to the creation of the national minimum wage and would be chaired by Sir George Bain.

The meeting, in Downing Street, follows strong support in the Commons on Friday for a private member’s bill giving new rights to agency staff.

The bill, promoted by Labour MP Andrew Miller (Ellesmere Port and Neston) gained a second reading by 147 votes to 11, with former minister Peter Hain among more than 130 Labour MPs defying the Government which does not support legislation.

Union leaders reacted with delight to the vote which put pressure on the Government to come up with a deal acceptable to unions and business groups.

Employers have argued strongly against the need for a new law, maintaining that agency workers already have protection covering pay, holidays and conditions.

The CBI warned that 250,000 jobs could be hit if the bill becomes law while every leading business group said that the UK’s flexible labour market would be hit.

But Tony Woodley, joint leader of Unite, who will attend the meeting, said that he believed the Commons vote had “quashed” the idea of a commission.

“The evidence of the need for legislation now is overwhelming and we will not accept the promise of jam tomorrow.”